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Jason Levine
Premium
join:2001-07-13
USA
reply to FFH5

Re: Possible IP TV First Step

Prices going down doesn't always mean profits go down.

Let's assume that Time Warner Cable rolled out TWC TV to everyone in the US. Even if you aren't in a Time Warner Cable area (or have Time Warner Cable TV service), you could sign up for TWC TV. Suddenly, they have an influx of customers. Even if each customer was paying less (because we'll assume for the moment that TWC TV costs less than a cable subscription) the increased number of customers would add more money.

In addition, IP TV would require less infrastructure investment than cable TV. To run a Cable TV service, you need to maintain cable lines, phone support, service in people's homes, etc. To run an IP TV service, you need app support and servers to stream the channels. Cost of doing business would drop and profits would rise. (Yes, the Cable Internet side of things would still require money/investment, but that's separate from the Cable TV portion.)
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-Jason Levine